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Why doesn't China have respectable brands that can compete in developed markets such as the US and Europe?
I think biggest obstacle to achieve that is the requirement that foreign automakers have a Chinese partner (the joint-ventures). Yes, I am saying this with a lot of hindsight, but while the idea of "Hey, let's force them to have a JV so we don't have to start from scratch" might have looked good in the beginning, it is clearly not going anywhere.
This is only slowing down the development of China's indigenous auto industry, because foreign automakers in forced JV's will not give up their latest technology. Instead, the Chinese market is fed with outdated platforms and tech. Automakers that have JV's have no real push to develop anything, because they already have a "partner."
The ones that don't will make cheaper cars for the other segment of the market, in a "race to the bottom." If China wants to have a respectable world-class automotive industry, they need to abolish the forced JV's as soon as possible. Indigenous automakers should still be protected, but when they are making cars to compete with rivals rather than "partners," there will be a push for development.
Would you agree?
I think biggest obstacle to achieve that is the requirement that foreign automakers have a Chinese partner (the joint-ventures). Yes, I am saying this with a lot of hindsight, but while the idea of "Hey, let's force them to have a JV so we don't have to start from scratch" might have looked good in the beginning, it is clearly not going anywhere.
This is only slowing down the development of China's indigenous auto industry, because foreign automakers in forced JV's will not give up their latest technology. Instead, the Chinese market is fed with outdated platforms and tech. Automakers that have JV's have no real push to develop anything, because they already have a "partner."
The ones that don't will make cheaper cars for the other segment of the market, in a "race to the bottom." If China wants to have a respectable world-class automotive industry, they need to abolish the forced JV's as soon as possible. Indigenous automakers should still be protected, but when they are making cars to compete with rivals rather than "partners," there will be a push for development.
Would you agree?